Introduction

The best places to buy rental property for cash flow and equity growth often have three things in common: job growth, population growth and affordability. When you find a market that has all three of these factors, you’ll probably be able to find good investment opportunities.

There are several cities across the United States where these factors exist today — places where you can buy high cash flow rental property while prices are still low (around $100,000 in many cases), and watch your equity grow.

In this article, which was updated for quality and accuracy on January 16, 2018, you’ll learn about 16 of these “best-buy” real estate markets for the year 2018. Find out what makes them great places to invest and why. Note: These markets are not listed in any particular order.

Part 1: Orlando, Florida

The demand for single family homes has been on the rise in the Sunshine State for quite some time. Still, it’s possible to acquire fully renovated properties in good Florida neighborhoods for under $125,000.

What’s even more interesting is that, despite these incredibly low housing prices statewide, many home seekers are choosing to rent instead of buy. As you can imagine, this is causing rental rates to skyrocket (approximately 8% just this year)!

On top of great cash flow, values are on an upswing in these areas with no sign of slowing down. They are nowhere near their 2006 highs and inventory levels are still way down because builders just can’t make a profit at these price points.

Property taxes and insurance are low, plus there’s no state income tax. Add warm weather and exceptional health care, and you can see why many of the 10,000 baby boomers retiring every day are moving to Florida.

Orlando is one of the best places to buy rental property in the state of Florida in 2018. Located in Florida’s “sun belt” region, the area is known for its warm climate, beautiful beaches, world famous amusement parks, entertainment, and attractions.

With a combined population of 3.3 million residents, the Orlando real estate market is fueled by job seekers, baby boomer retirees, and students who want to live in a “cheap and cheerful” area that offers a high quality of living at a reasonable cost.

Orlando Market Statistics

Median Sales Price: $188,000

Median Rent Per Month: $1,360

Median Household Income: $42,000

Population: 2.4 M

1-Year Job Growth Rate: 4.20%

5-Year Equity Growth Rate: 66.40%

5-Year Population Growth: 14.20%

Unemployment Rate: 4.5%

Orlando Market Quick Facts

Metro Orlando is the 4th largest metro area in the country, and it’s also the 16th fastest growing metro in the nation.

Forbes reports that 60 million people visited the Orlando area in 2015, making it the most visited tourism destination in the country.

The population in Orlando has grown 41% since the year 2000. To date Metro Orlando houses over 2.3 million residents.

Rents grew by 3.4% in the last 12 months, which is higher than the national and state levels.

Orlando’s projected job growth for the next ten years is the second-highest (3.2% annual growth) in the United States among the 200 largest metros, Forbes reports.

Conclusion: Top 3 Reasons to Invest in Orlando in 2018

As mentioned, most of the best real estate investment markets have three factors in common: job growth, population growth and affordability. Orlando is no exception…

Job Growth: Orlando’s employment growth is among the best in the U.S. with more than 173,900 jobs created since the recession and a projected growth rate of 3.2% annually for the next ten years.

Population Growth: Orlando’s population has grown 217% faster than the national average over the last 5 years, and with all the new jobs coming to the area, it’s very likely this trend will continue in 2018. (This means the demand for housing is likely to increase.)

Affordability: In Orlando it is still possible to purchase fully renovated 3-bedroom properties in good neighborhoods for as little as $122,500.

Part 2: Tampa, Florida

Located on the west coast of Florida, Tampa Bay is a densely populated metropolitan area (second only to Miami), with a population of more than 4 million people. Major cities in this area include St. Petersburg, Largo, Clearwater, New Port Richey, Holiday and Tampa.

The local economy is worth of $130 billion and the metro area has been ranked as one of the top 20 fastest growing in the country. Tampa also has a strong local economy with a strong focus on job growth in areas such as financial services and healthcare.

The Greater Tampa Bay area is worth over $130 billion and is consistently ranked among the top 20 fastest growing metro areas in the country. More than 19 firms with annual revenues of more than $1 billion are headquartered here and it is home to four Fortune 500 companies.

Tampa Market Statistics

Median Sales Price: $136,000

Median Rent Per Month: $995

Median Household Income: $43,514

Metro Population: 3.0 M

1-Year Job Growth Rate: 2.10%

5-Year Equity Growth Rate: 4.60%

5-Year Population Growth: 8.70%

Unemployment Rate: 4.60%

Tampa Market Quick Facts

Tampa has a population of 4 million, a local economy worth over $130 billion, and the it’s ranked in the top 20 fastest growing metros in the United States.

An area with mostly high-priced homes, Tampa still has pockets where investors can find homes at affordable prices (even as low as $90,000) and turn around to rent them for $950 a month to $1,250 a month.

New jobs from Amazon and a talent pipeline from the University of South Florida helped push the Tampa metropolitan area to the No. 15 spot on the Milken Institute’s 2018 index of best-performing cities in the United States.

Tampa remains a fantastic tourism market. It’s a popular option for retirees as well, providing for many short-term rental opportunities.

Conclusion: Top 3 Reasons to Invest in Tampa in 2018

As you’ve learned, when a real estate market has job growth, population growth and affordability, you’ll likely be able to find good investment opportunities. We believe Tampa is one of the best places to invest in real estate in 2018 because it has all three.

Job Growth: The Tampa metro area is ranked #15 on the Milken Institute’s 2018 index of best-performing cities in the United States

Population Growth: Tampa has a population of 4 million, a local economy worth over $130 billion, and the it’s ranked in the top 20 fastest growing metros in the United States.

Affordability: An area with mostly high-priced homes, Tampa still has pockets where investors can find homes at affordable prices, even as low as $90,000 and turn around to rent them for $950 a month to $1250 a month.

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Part 3: Jacksonville, Florida

In the past 10 years, the Jacksonville metro area has grown by a whopping 20%. To date there are 1.3 million people living in this area, and more continue come every year. In fact, Jacksonville’s population has been steadily increasing at a rate of about 2% per year, and their workforce is growing at a consistent rate as well.

There are many reasons for this growth. For starters, Jacksonville is also the only Florida city that is home to four Fortune 500 companies. The region also has a world-class health care system, with more than 20 hospitals and a growing bioscience community. Additionally, 13 of Forbes Global 500 have operations in Jacksonville.

With a cost of living below the national average, a wonderful climate and a business-friendly environment, we believe Jacksonville is one of the best real estate investment markets in the country right now.

Jacksonville Market Statistics

Median Sales Price: $154,000

Median Monthly Rent: $1,050

Median Household Income: $48,143

Metro Population: 1.5 M

1-Year Job Growth Rate: 3.0%

5-Year Equity Growth Rate: 38.70%

5-Year Population Growth: 9.60%

Unemployment Rate: 4.6%

Jacksonville Market Quick Facts

The population in Jacksonville has grown 24.1% in population since 2000, which is higher than Miami’s 16.4% and Tampa’s 19.8%.

Future job growth in Jacksonville is predicted to be 39.21% over the next 10 years.

In Jacksonville, the median home price is about $153,400, which is 23% less than the national average.

A typical 3 bedroom home can rent for 25% more than the national average.

The expansion of the Panama Canal is helping to bring jobs into the Jacksonville area ports. This is likely to lead to even more population growth.

The Jacksonville metro also has a world-class health care system, with more than 20 hospitals and a growing bioscience community.

Conclusion: Top 3 Reasons to Invest in Jacksonville in 2018

There are three main reasons that Jacksonville made our list of the best places to invest in property: job growth, population growth and affordability.

Job Growth: Forbes also ranked Jacksonville #3 on their list of best cities in the U.S. for jobs. The region also has a world-class health care system, with more than 20 hospitals and a growing bioscience community.

Population Growth: The population in Jacksonville has grown 24% since the year 2000, and continues to grow by an average 2% annually. Future job growth over the next ten years is predicted to be 39.21%.

Affordability: In Jacksonville, the median home price is about $153,400, which is 23% less than the national average. A typical 3 bedroom home can rent for 25% more than the national average. These factors show us that there’s a strong opportunity for cash flow in the Jacksonville metro.

Part 4: Cape Coral, Florida

Known as the “Boaters Paradise” of Florida, Cape Coral is a fantastic area to acquire rental property, for both cash flow today, and a strong chance of appreciation in the future.

What’s interesting about this area is that before now, Cape Coral was primarily a vacation destination. As a result, it was one of the hardest hit cities in the country during the real estate downturn of 2008. Values plummeted.

Our team at Real Wealth Network was concerned about that and the possibility of it happening again in the next downturn. But our research showed that many baby boomers who are retiring today are choosing to live in vacation-like communities for a resort-style retirement.

What were once just vacation homes are now becoming primary residences. Plus, values haven’t come back yet in Cape Coral, so it’s still a very affordable vacation-style destination. With 10,000 baby boomers retiring every day, and not all in a position to buy, it’s no wonder rents in Cape Coral are on the rise.

As a result, Cape Coral rents have increased by more than 26% over the last few years and the baby boomer population continues to be one of the fastest growing rental groups in the nation.

This could be because they are not as intrigued with home ownership after the last crash, or they don’t want to deal with home maintenance, or maybe they just can’t qualify for a loan but want to retire in an affordable resort community.

Cape CoralMarket Statistics

Median Sales Price: $217,000

Median Rental Price Per Month: $1,650

Median Household Income: $51,000

Metro Population: 722,000

1-Year Job Growth Rate: 2.44%

5-Year Equity Growth Rate: 81%

5-Year Population Growth: 17%

Unemployment Rate: 4.8%

Cape Coral Market Quick Facts

Single family home values in Cape Coral have risen 81% over the last 5 years. This is 179% faster than the national average.

Cape Coral was recently named as one of the 10 Real Estate Markets To Watch in 2017, according to Forbes. Their reasons: high job growth (fourth in the nation!) and a sharp drop in vacancy rates. “And then Fort Myers, FL is home to baseball’s Boston Red Sox and Minnesota Twins during spring training every year, which boosts the economy even more every spring,” says Pat Eberle of RASO Realty in Cape Coral, FL.

Many retiring baby boomers are choosing to live in vacation-like communities, and Cape Coral is one of the top communities in the nation for this type of resort-style retirement.

Forbes rated Cape Coral the number one best city in the United States for future job growth in 2017, and in the top 25 for best places to retire in 2015.

Money Magazine ranked Cape Coral as the #1 city for startups in 2015.

In 2016 Forbes Magazine named the City of Cape Coral as # 9 of the “Top 25 Cities To Retire in the United States”

Conclusion: Top 3 Reasons to Invest in Cape Coral in 2018

Job Growth: Money Magazine ranked Cape Coral as the #1 city for startups in 2015 and in 2017Forbes rated it the number one best city in the United States for future job growth.

Population Growth: Forbes ranked Cape Coral as the 10th fastest growing city in the nation. And MarketWatch ranked it as the #2 city in the U.S. where retirees are moving.

Affordability: Home prices in Cape Coral still haven’t bounced back from the Great Recession of 2008, so it’s still more affordable than other coastal cities. Plus, with 10,000 baby boomers retiring every day, not all in a position to buy, it’s no wonder rents in Cape Coral are on the rise too. (Both good signs for investors!)

Part 5: Pittsburgh, Pennsylvania

With a population of over 2.3 million, the Pittsburgh Metro area is the 22nd largest in the nation. The “Burgh” is known as “The City of Bridges” for its 446 bridges, and “The Steel City” for its former steel manufacturing base.

It’s the home of several large corporations that help to keep its moderate and growing economy stable including PNC Financial Services and Federated Investors. Its economy thrives on healthcare, education, technology, robotics, financial services, glass, and more recently film production (The Dark Knight Rises was recently filmed downtown).

The region is also known for oil and natural gas production and is headquarters to major global financial institutions including PNC Financial Services (the nation’s fifth largest bank), Federated Investors and the regional headquarters of BNY Mellon.

It is ranked as one of the top 12 places to invest by the Pittsburgh Post Gazette. It’s also one of the top 10 housing markets for redevelopment and growth. Plus, according to RentRange rents for single-family homes rose 12.6 percent and the average gross yield was over 15 percent! That’s of course why why we believe Pittsburgh is one of the best places to buy rental homes this year.

Pittsburgh Market Statistics

Median Sales Price: $137,000

Median Rent Per Month: $1,140

Median Household Income: $36,000

Metro Population: 2.3 M

1-Year Job Growth Rate: 0.27%

5-Year Equity Growth Rate: 20.20%

5-Year Population Growth: -0.63%

Unemployment Rate: 4.70%

Pittsburgh Market Quick Facts

The median sale price of 3 bedroom single family homes in Pittsburgh remains low at only $137,000. However, in some neighborhoods it is possible to purchase homes for less than $73,000.

Median rent per month is $1,140 a month or 0.99% of the median purchase price, which provides an opportunity for a sizable and quick return.

The area is also seeing steady rise in home value with over 20% equity growth over the last 5 years.

Pittsburgh has been experiencing steady job growth in the education and health services, leisure and hospitality, professional and business services, and STEM sectors.

Pittsburgh is also home to 15 Fortune 500 companies, the East Coast headquarters for Google, and many other high tech startups.

Business Times ranks Pittsburgh as the #1 top city to relocate to & Zillow ranked it in the top 10 best housing markets in the nation.

Conclusion: Top 3 Reasons to Invest in Pittsburgh in 2018

Job Growth:Pittsburgh has not been creating as many jobs as other U.S. cities, however the metro area is experiencing employment gains in several sectors. For example, between September 2015 and 2016, there were 6,773 jobs created in the education and health services, leisure and hospitality, professional and business services, and STEM sectors. However, 6,447 jobs were lost from goods-producing industries, which created close to the net decline in employment for the metro area. All of this data shows us that demand in Pittsburgh is still rising at a steady rate among some “high-value” demographics, including millennials and people in STEM fields.

Population Growth:Pittsburgh’s overall population has declined since 2010 but the millennial population has grown significantly. In fact, Time recently ranked Pittsburgh in the top 10 U.S. cities where millennials are moving. This is a good sign for investors because millennials often prefer renting to buying (in 2017, homeownership for millennials is less than 13% nationwide), which means the demand for rental homes in Pittsburgh will likely rise in the coming years.

Affordability:The median sale price of 3 bedroom single family homes in Pittsburgh remains low at only $137,000, which is 27% less than the national average of $187,000.

Part 6: Huntsville & Montgomery, Alabama

The fourth-largest city in Alabama, Huntsville is just a 90-mile drive on the I-65 heading north from Birmingham. Founded in 1811, Huntsville is known for its rich Southern heritage and a legacy of space missions. Huntsville actually earned the nickname “The Rocket City” during the 1960s when the Saturn V rocket was developed at Marshall Space Flight Center, which later made it possible for Neil Armstrong and Buzz Aldrin to walk on the moon.

Today, Huntsville is one of the most well known cities in the Southeast part of the country. USA Today touted Huntsville as “one of the top communities leading the economic recovery,” while Money magazine named it “one of the nation’s most affordable cities.”

Huntsville is also well known for its technology, space, and defense industries. The top employer is the military with over 31,000 jobs at Redstone Arsenal. NASA Marshall Space Flight Center is the next largest employer. The city is also home to several Fortune 500 companies, which provide a broad base of manufacturing, retail, and service industries to the area.

The Huntsville/ Montgomery real estate market offers great opportunities for investors today. It’s one of the nation’s most affordable investment markets, it has a steady job market that offers STEM workers higher than average salaries, and a growing population (38% of whom are renters). These are good signs for investors interested in generating passive monthly income.

Huntsville & Montgomery Market Statistics

Current Median Home Price: $136,000

Median Rent Per Month: $995

Population: 500,000

1-Year Job Growth Rate: 1.10%

5-Year Equity Growth Rate: 4.60%

5-Year Population Growth: 7.30%

Unemployment Rate: 5.10%

Huntsville & Montgomery Market Quick Facts

Huntsville is home to several prestigious Southern universities, including Alabama A&M University, Oakwood University and the University of Alabama in Huntsville.

The U.S. Space & Rocket Center, Alabama’s top paid tourist attraction and the earth’s largest space museum, is also located in Huntsville.

Huntsville is well known for it’s technology, space, and defense industries. The top employer is the military with over 31,000 jobs at Redstone Arsenal. NASA Marshall Space Flight Center are the next largest employers.

Both cities are also home to several Fortune 500 companies, which provide a broad base of manufacturing, retail and service industries to the area.

Huntsville continues to lead the growth in Alabama. In the last five years the population has grown over 7%, which is 63% faster than the national average.

Huntsville enjoys lower tax rates and high rents, which increase ROI. And since the average home price is approximately $136,000, these areas won’t break your bank account either.

Conclusion: Top 3 Reasons to Invest in Huntsville & Montgomery in 2018

Job Growth: Huntsville is well known for it’s technology, space, and defense industries. The top employer is the military with over 31,000 jobs at Redstone Arsenal. NASA Marshall Space Flight Center are the next largest employers. The city is also home to several Fortune 500 companies, which provide a broad base of manufacturing, retail and service industries to the area.

Population Growth:Since 2010, Huntsville’s population has increased 7.25%. During the same period, the national population grew by only 3.93%. This shows us that people are moving to Huntsville at a higher rate than most other cities across the United States. This type of population growth, when coupled with affordable real estate prices and job growth, is a positive indicator that the Huntsville real estate market is strong. Learn more about job growth in the next section.

Affordability: Montgomery and Huntsville enjoy lower tax rates and high rents, which increase ROI. And since the average 3 bedroom single family home price is approximately $136,000, these areas won’t break your bank account either.

Part 7: Houston, Texas

When then-President of the Republic of Texas, Sam Houston, incorporated the City of Houston in 1837, the prevailing industry was railroad construction. A lot has changed since then, but the city’s passion for modes of transportation has not. Hint: Houston is the home of NASA’s Mission Control and a lot of oil money.

Houston is also home to 49 Fortune 1000 companies, which is the second largest concentration of any other city in the country, behind only New York with 72. In addition, the largest medical center in the world, The Texas Medical Center, is located in Houston and gets an average of 7.2 million visitors per year. To date, there have been more heart surgeries performed here than anywhere else in the world.

Houston is a stable, landlord friendly market that offers both cash flow and equity growth. And you can STILL acquire properties well below their replacement value.

Houston Market Statistics

Current Median Home Price: $150,000

Median Rent Per Month: $1,425

Metro Population: 6.8 M

1-Year Job Growth Rate: 0.50%

5-Year Equity Growth Rate: 44.20%

5-Year Population Growth: 14.0%

Unemployment Rate: 5.3%

Houston Market Quick Facts

Houston is more affordable than many U.S. real estate markets today. In 2017, the median price of three bedroom homes in Houston was $150,000. This is 19.79% lower than the national average of $187,000

Houston offers investors a strong opportunity to generate passive monthly income. In January 2017, the median monthly rent for three bedroom homes in Houston was $1,425, which is 0.95% of the purchase price of $150,000. This is higher than the national price-to-rent ratio of 0.74%.

Houston home values have been rising faster than other U.S. real estate markets. In January 2012, the median price of three bedroom homes in Houston was $104,000. Over the next five years (Jan. 2012 to Jan. 2017), three bedroom homes in Houston appreciated by 44.23%. During the same period, nationally, three bedroom homes appreciated by only 28.97%.

Houston was ranked the #10 best city for young entrepreneurs by Forbes and the #2 best place to live in the world by Business Insider.

Conclusion: Top 3 Reasons to Invest in Houston in 2018

Job Growth: It’s currently at, or near the top for job growth in the U.S and the cost of living is well below the national average.

Population Growth: Since 2010, Houston’s population has increased 13.86%. During the same period, the national population grew by only 3.93%. This shows us that people are moving to Houston in greater number than most other American cities, which is a positive indicator of a strong real estate market.

Affordability:In January 2017, the median price of three bedroom homes in Houston was $150,000. This is 19.79% lower than the national average of $187,000. Houston also offers investors a strong opportunity to generate passive monthly income. In January 2017, the median monthly rent for three bedroom homes in Houston was $1,425, which is 0.95% of the purchase price of $150,000. This is higher than the national price-to-rent ratio of 0.74%.

Part 8: Cleveland, Ohio

Cleveland is one of the strongest markets in the nation, offering investors high cash flow and future growth. With a workforce of over 2 million people, Cleveland has the 12th largest economic region in the nation.

The number of people moving to downtown Cleveland has also gone up 32% from 1990 to 2000—the largest population increase of any Midwest city (including Chicago) and far above the regional average (7.7 percent), according to Brookings.

And the pace is picking up, with an all time high of 12,500 moving downtown just last summer, mostly comprised of the coveted Millennials (ages 18-34). This demographic shift is referred to as the “brain gain,” since there’s been a 139% rise in the number of young residents with bachelor’s degrees.

Why? Downtown Cleveland has experienced a renaissance over the past 5 years, with an estimated $19 billion in development completed or planned since 2010. Occupancy rates are at an astonishing 98% and home sales are up 12% year over year.

Bonus: you can still buy properties at a fraction of their mid-2000 price in good B neighborhoods for $70,000 – $85,000 that rent for $800-$1000/month.

Cleveland Market Statistics

Median Household Income: $51,000

Current Median Home Price: $122,000

Median Rent Per Month: $1,140

Metro Population: 2.1 M

1-Year Job Growth Rate: 1.20%

5-Year Equity Growth Rate: 15.10%

5-Year Population Growth: -1.00%

Unemployment Rate: 5.5%

Cleveland Market Quick Facts

Fastest growing healthcare economy in U.S. (and home to world renowned Cleveland Clinic).

Nation’s first Global Center for Health and Innovation as well as a new medical convention center.

Has the 2nd largest live theater district in the U.S., second only to New York City.
Home to three major sport teams that bring billions of dollars to the area every year.

It’s easy to buy B neighborhood properties for as low as $70,000 and turn that into $800 a month. Properties remain well below mid-2000 prices in most areas.

Conclusion: Top 3 Reasons to Invest in Cleveland in 2018

Job Growth: Cleveland has a fast-growing healthcare and tech sector. Millennials are moving into the area at a rapid pace to take advantage of the job opportunities available at Cleveland companies, including The Cleveland Clinic, Eaton Corporation, and Key Corp.Population Growth:The number of people moving to downtown Cleveland is also gone up 32% from 1990 to 2000—the largest population increase of any Midwest city (including Chicago) and far above the regional average (7.7 percent), according to Brookings. And the pace is picking up, with an all time high of 12,500 moving downtown just last summer, mostly comprised of the coveted Millennials (ages 18-34).Affordability:In Cleveland it’s still possible to purchase single family homes at a fraction of their mid-2000 prices. For example, in good B neighborhoods homes sell for $70,000 – $85,000 and rent for $800 – $1000/month. This means there’s a good opportunity for cash flow and appreciation in this market. And that’s great news for real estate investors in 2018.

Part 9: Cincinnati & Dayton, Ohio

Cincinnati is a unique and historic city located on the Ohio River. Winston Churchill once said that “Cincinnati is the most beautiful of the inland cities of the union.” It seems like a lot of people today agree with Mr. Churchill…

With a population of 2.1 million, Cincinnati is part of the 24th largest U.S. metropolitan area and it is growing fast! Both Cincinnati and neighboring city, Dayton, are rapidly coming together in a rush of housing, retail and commercial development across Warren and Butler counties.

According to the Brookings institution, the Cincinnati/Dayton area is among the nations 25 fastest developing regions. Yet the cost of living and the cost of housing are still well below the national average, making this an affordable and attractive place to live.

Cincinnati has also become a popular destination for new and relocating corporate headquarters, including 10 Fortune 500 companies and 17 Fortune 1000 companies.

All of these are good signs for investors that are looking to invest in cash flow property with a strong chance of appreciation.

Cincinnati Market Statistics

Metro Population: 2.1 M

Median Household Income: $51,000

Current Median Home Price: $143,000

Median Rent Per Month: $1,250

1-Year Job Growth Rate: 2.0%

5-Year Equity Growth Rate: 17.0%

5-Year Population Growth: 2.40%

Unemployment Rate: 4.7%

Cincinnati Market Quick Facts

The area is among the nation’s 25 fastest developing regions and since 1990 the county’s population has increased by 14%.

A $350 million retail complex is set to open in October.

Cincinnati/Dayton is the country’s 4th largest inland hub.

The area is 4th in the US in new facilities – including GE Aviation’s new 420,000 square-foot Class A office campus and a new 80,000 sq ft Proton Therapy Center for cancer research.

Cincinnati has also completed a $160 Million dollar campus expansion.

Cincinnati was named as one of the 10 Hottest Housing Markets for Millennials in 2016 – The Street

Conclusion: Top 3 Reasons To Invest in Cincinnati in 2018

Job Growth: The Cincinnati metro area has the 4th largest number of new facilities in the U.S. – including GE Aviation’s new 420,000 square-foot Class A office campus and a new 80,000 sq ft Proton Therapy Center for cancer research.

Population Growth: The area is among the nation’s 25 fastest developing regions and since 1990 the county’s population has increased by 14%. With a cost of living that is 8.2% below the national average, this trend will likely continue.

Affordability:In Cincinnati it’s still possible to purchase fully renovated cash flow properties in good neighborhoods for $80,000 to $140,000.

Part 10: Chicago, Illinois

Known for its towering skyscrapers and Fortune 500 companies, the Windy City is one of the few remaining U.S. markets where you can still find great investment opportunities.

Real estate prices have soared within Chicago’s city limits, causing people to move out of the city and into the suburbs. As a result, prices in some of these neighborhoods have increased by 14%+ this past year alone. Yet property in the area is still undervalued…You can purchase fully renovated rental homes from $80,000 to $150,000 that you rent for 1.2% of the purchase price!

All of these factors indicate that Chicago is great news for investors looking to buy income property with high cash flow and strong potential for appreciation.

Good news for investors: Chicago is one of the last markets where housing prices have not yet risen past their 2006 levels, simply due to the state’s tough foreclosure laws. Savvy investors are taking advantage of the situation and are still able to acquire income property at bargain prices.

Chicago Market Statistics

Metro Population: 9.5 M

Median Household Income: $63,000

Current Median Home Price: $176,000

Median Rent Per Month: $1,650

1-Year Job Growth Rate: 0.70%

5-Year Equity Growth Rate: 18.0%

5-Year Population Growth: 0.45%

Unemployment Rate: 5.4%

Chicago Market Quick Facts

Chicago is the 3rd largest city in the United States and the 4th most economically powerful city in the world.

It’s still possible to find homes for sale in mid-level markets in the range of $120,000 to $160,000. The median sale price for a home here is $252,000.

In some neighborhoods you can still purchase fully renovated rental homes for as low as $80,000 to $150,000 that you rent for 1.2% of the purchase price!

The median rent in the Chicago metro area is over $1550 per month.

57% of the population rents, which is 24% higher than the national average.

83% of Chicagoans live in a home for 1 year or more.

Chicago is home to 30 Fortune 500 companies and boasts a $500 billion GDP, which is more than that of Norway and Belgium combined!

Conclusion: Top 3 Reasons to Invest in Chicago in 2018

Job Growth:Chicago is the 3rd largest city in the United States and the 4th most economically powerful city in the world. There are 30 Fortune 500 companies headquartered in the metro area, which boast a $500 billion GDP. This is more than that of Norway and Belgium combined!

Population Growth:Real estate prices have soared within Chicago’s city limits, causing people to move out of the city and into the suburbs. As a result, prices in some of these neighborhoods have increased by 14%+ this past year alone.

Affordability:Chicago is one of the last markets where housing prices have not yet risen past their 2006 levels, simply due to the state’s tough foreclosure laws. The median sale price for a home in Chicago is $252,000, but it’s still possible to find homes for sale in mid-level neighborhoods between $120,000 and $160,000. The median rent in the Chicago metro area is also over $1550 per month. This means there are great opportunities for cash flow in Chicago, and a strong chance of appreciation too.

Part 11: Indianapolis, Indiana

With a metro area of nearly 2 million people, Indianapolis is the 2nd largest city in the Midwest and 14th largest in the U.S. The city has poured billions of dollars into revitalization and now ranks among the best downtowns and most livable cities, according to Forbes.

Housing costs and the annual cost of living in Indianapolis are also well under the national average. Indy also has a strong, diverse job market, great schools and universities, and plenty of sports attractions. What do all of these factors tell us about the real estate market potential in Indianapolis? Let’s just say it’s a good time to become a Indianapolis landlord.

Bonus: you can purchase turn-key properties for only $60,000 – $120,000. (Turn-key means the properties are fully renovated to like-new condition, leased to a quality tenant, and excellent property management in place).

Indy is the ONLY U.S. metropolitan area to have specialized employment concentrations in all five bioscience sectors evaluated in the study: agricultural feedstock and chemicals; bioscience-related distribution; drugs and pharmaceuticals; medical devices and equipment; and research, testing, and medical laboratories.

Conclusion: Top 3 Reasons to Invest in Indianapolis in 2018

Job Growth: Indianapolis is one of the fastest growing hubs for technology, bioscience and Fortune 500 companies in the nation. In fact, Indy is the ONLY U.S. metropolitan area to have specialized employment concentrations in all five bioscience sectors evaluated in the study: agricultural feedstock and chemicals; bioscience-related distribution; drugs and pharmaceuticals; medical devices and equipment; and research, testing, and medical laboratories.

Population Growth: With a metro area of nearly 2 million people, Indianapolis is the 2nd largest city in the Midwest and 14th largest in the U.S. Since 1989 Indy’s population has grown over 36%, and continues to grow at a rate of 1% annually.

Affordability: Indianapolis is among the few U.S. cities where you can purchase turn-key properties for only $60,000 to $120,000.

Part 12: Kansas City, Missouri

Kansas City, widely known for its sports, art and culture, is also of the most affordable cities in the U.S. Since 2000, the population in the metro area has increased by 10.85%, totaling 2.34 million people.

More so, the area’s gross regional product grew 2.9% in 2014, which is higher than the national average of 2.2%. Kansas City has become an important sector for healthcare, IT, manufacturing, and the auto industry, adding some 10,000 jobs on average year-after-year. This economic and population growth is impressive.

Good news for investors: in recent years, many Americans have been following companies/jobs to “less expensive” cities, including Kansas City. The result: these affordable markets are seeing a steady increase in rental demand. This means it’s a very good time to be a Kansas City landlord.

Kansas City Market Statistics

Metro Population: 2.1M

Median Household Income: $57,000

Current Median Home Price: $141,000

Median Rent Per Month: $1,220

1-Year Job Growth Rate: 1.30%

5-Year Equity Growth Rate: 16.50%

5-Year Population Growth: 4.50%

Unemployment Rate: 4.40%

Kansas City Market Quick Facts

Kansas City has become one of the hottest spots for renters, which in turn has increased demand for more available homes and apartments for rent.

There is a large number of affordable homes on the market including pre-foreclosure and bank-owned properties priced around $100,000 to $120,000. The average list price here is $187,000.

Average monthly rent sits around $793 a month. The median household income here is about $56,740.

Employment is predicted to continue to increase 1.4% in 2018.

Conclusion: Top 3 Reasons to Invest in Kansas City in 2018

Job Growth:Kansas City has become an important sector for healthcare, IT, manufacturing, and the auto industry, adding approximately 10,000 jobs annually. This economic and population growth is impressive.

Population Growth:In recent years, many Americans have been following companies/jobs to “less expensive” cities, including Kansas City. In fact, since 2000, the population in KC has increased by 10.85%, totalling 2.34 million people.

Affordability:The The average list price in Kansas City is $187,000. However, the metro area has a large number of affordable homes on the market, including pre-foreclosure and bank-owned properties priced between $100,000 to $120,000. The average monthly rent sits around $793 a month.

Part 13: Detroit, Michigan

Detroit, the largest city in the state of Michigan, is recognized as the automotive capital of the world, which has earned it the nickname “Motor City.” The metro area is home to General Motors, Ford Motor Company, Chrysler (“The Big 3” major automotive companies in the U.S. and Canada), which offer a wide-range of jobs and invest billions of dollars into the city’s infrastructure.

Detroit is also home to 100 Fortune 500 companies, including Penske Automotive, Quicken Loans, Kellogg, Whirlpool, and Walmart.

Despite its longstanding nickname, several of Detroit’s fastest growing industries are in sectors as diverse as healthcare, defense, aerospace, IT and logistics.

Billionaire Dan Gilbert (the chairman and founder of Rock Ventures and Quicken Loans Inc, as well as the majority owner of the National Basketball Association’s Cleveland Cavaliers, the American Hockey League’s Cleveland Monsters, the Arena Football League’s Cleveland Gladiators and the NBA Developmental League’s Canton Charge) has moved numerous companies to Detroit, investing over $1.6 Billion in the Detroit area.

Major Attractions include Detroit Tigers, Detroit Lions, Detroit Red Wings, Wayne State University, University of Michigan, Beaumont Hospital, Fox Theater and a new bridge to Canada being built.

Our Real Wealth vetting team took a trip out to Detroit last month to see what’s happening there and to find out why investors are jumping back into that market. We were shocked at what we found! Downtown Detroit is being totally revitalized with billions of dollars of real estate and construction activity. Plus, many of the dilapidated foreclosures were torn down.

We found an excellent team in Detroit who finds discounted properties, fixes them to like-new condition and offers ongoing properties management. Somehow they are able to keep the price points down for a fully turnkey property to under $80,000, and in some cases as low as $50,000. Gross yields are closer to 16%! This is why we believe Detroit is one of the best places to invest in rental property this year.

Detroit Market Statistics

Metro Population: 4.3M

Median Household Income: $54,000

Current Median Home Price: $166,000

Median Rent Per Month: $1,360

1-Year Job Growth Rate: 1.80%

5-Year Equity Growth Rate: 66.0%

5-Year Population Growth: 0.20%

Unemployment Rate: 5.6%

Detroit Market Quick Facts

Detroit is also home to 100 Fortune 500 companies, including Penske Automotive, Quicken Loans, Kellogg, Whirlpool, and Walmart.

Despite its longstanding nickname, several of Detroit’s fastest growing industries are in sectors as diverse as healthcare, defense, aerospace, IT and logistics.

The Michigan Business Development Program provides grants, loans, and other economic assistance to businesses.

Michigan has a flat 6% corporate income tax, which is the lowest in the nation.

Personal income tax is also among the lowest in the nation at 4.25%.

Michigan also has a lower cost of living than any other Midwestern state.

Since 2010, more than 45,000 automotive manufacturing jobs have been added to the Detroit Metro, which is more than any other area in the nation.

Conclusion: Top 3 Reasons to Invest in Detroit in 2018

Job Growth: According to the U.S. Bureau of Labor Statistics, the employment rate in Detroit increased by 2% between September 2015 and September 2016. During the same period, the national job count increased by only 1.7%.

Population Growth: People have been following companies/jobs to “less expensive” cities. For example, Billionaire Dan Gilbert (the chairman and founder of Rock Ventures and Quicken Loans Inc, as well as the majority owner of the National Basketball Association’s Cleveland Cavaliers, the American Hockey League’s Cleveland Monsters, the Arena Football League’s Cleveland Gladiators and the NBA Developmental League’s Canton Charge) has moved numerous companies to Detroit, investing over $1.6 Billion in the Detroit area.

Affordability: In Detroit you can purchase a fully renovated rental property in good B neighborhoods for only $65,000, and rent them for about $900/month. Plus, these properties used to sell for over $100,000 so there’s a good chance values will increase as well.

Part 14: Atlanta, Georgia

Located in the low foothills of the Appalachian Mountains, Atlanta is the third-largest metropolitan region in the Southeast, behind the Greater Washington and south Florida areas.

For decades, the Atlanta metro area experienced rapid growth, which attracted families from all over the southern United States as well as the Midwest. The population grew close to 4% annually to match the demand of new jobs – many of them in the high-paying sectors, including manufacturing. Today, Atlanta’s growth has slowed a bit, but not entirely.

Between January 2016 and January 2017, 3 bedroom single family homes in the Atlanta metro appreciated by a median 8.57%. This is 2.32% higher than the national average of 6.25%.

During the same period, rents for 3 bedroom single family homes in Atlanta appreciated by an average 4.11%.

Between July 2015 and July 2016, Atlanta’s population grew by 1.72% versus 0.80% nationally.

In the last year, 74,500 new jobs were created in Atlanta – an annual growth rate of 2.85%. This is a higher rate than the national average of 2.35%.

Conclusion: Top 3 Reasons to Invest in Atlanta in 2018

Job Growth: In the last year, 74,500 new jobs were created in Atlanta – an annual growth rate of 2.85%. This is a higher rate than the national average of 2.35%.

Population Growth: Between July 2015 and July 2016, Atlanta’s population grew by 1.72% versus 0.80% nationally.

Affordability: In January 2017 the median purchase price of 3 bedroom single family homes in the Atlanta area was $152,000. This is 18.72% lower than the national average for 3 bedroom homes. And this is great news for real estate investors in 2018.

Part 15: Columbus, Ohio

Columbus is the capital of Ohio, the county seat of Franklin County, and the largest city in the state. In recent years, this city has emerged as one of the nation’s most technologically sophisticated cities — it is home to the Batelle Memorial Institute, the world’s largest private research and development foundation, and Ohio State University, the nation’s third-largest university campus.

Columbus also offers great opportunities for investors today. This is especially true for those who are looking for an affordable investment, strong monthly cash flow, and a good chance for equity growth.

Columbus Market Statistics

Median Sales Price: $93,000

Median Rent Per Month: $1,000

Median Household Income: $58,000

Population: 2.1 M

1-Year Job Growth Rate: 2.35%

5-Year Equity Growth Rate: 24.39%

5-Year Population Growth: 7.08%

Unemployment Rate: 4.30%

Columbus Market Quick Facts

Columbus is affordable. In January 2017, the median price of three bedroom homes in Columbus was $153,000. This is 18% lower than the national average of $187,000.

It’s possible to rent single-family homes in Columbus for as much as 1.08% of the purchase price. This is 46% higher than the national average.

Over the last five years, Columbus’ metro population has grown 59% faster than the national average.

Forbes named Columbus as the 11th Best Places for Business and Careers AND one of the top 10 cities in America to relocate to in 2017

Business Week named Columbus among the best cities to live and work in America.

Conclusion: Top 3 Reasons to Invest in Columbus in 2018

As mentioned, most of the best real estate investment markets have three factors in common: job growth, population growth and affordability. Columbus is no exception…

Job Growth: Columbus’ employment growth is among the best in the U.S. with a 2.35% increase in jobs between 4Q 2016 and 2017. With all the recent media recognition it’s likely that this trend will continue.

Population Growth: Columbus’ population has grown over 7% in the last five years, which is 59% faster than the national average.

Affordability: In Columbus it is still possible to purchase fully renovated properties in good neighborhoods for less than $100,000.

Part 16: Milwaukee, Wisconsin

Milwaukee is one of the top 50 markets in the country for the coveted millennial renter. More than 80% of current tenants are millennials. This is primarily because of close proximity to employment, retail and recreation hubs.

The number of unemployed in the metro area fell by 4,200 over the past 12 months (January, 2016 to January, 2017) to 34,300, a 10.9 percent decline from year-ago levels. The number of new unemployment compensation claims in metro Milwaukee numbered 5,748 for January, down 5 percent from one year ago. Metro Milwaukee’s unemployment rate for January fell to 4.2 percent (seasonally unadjusted), down 0.5 percentage points from one year ago.

Also, the average time on rental market is 14 days and investor clients are getting between 7-10 net CAP rates.

Additionally, median prices in Milwaukee have steadily increased over 7% annually the past three years according to data provided by Milwaukee Metro MLS.

Investing in Milwaukee real estate is a wise cash flow and appreciation investment strategy. Properties available are attractive rates of return. Rents are commonly above 1% of purchase price.

Milwaukee Market Statistics

Median Sales Price: $166,000

Median Rent Per Month: $1,278

Median Household Income: $56,000

Population: 1.6 M

1-Year Job Growth Rate: – 0.75%

5-Year Equity Growth Rate: 14.48%

5-Year Population Growth: 1.01%

Unemployment Rate: 4.20%

Conclusion: Top 3 Reasons to Invest in Milwaukee in 2018

Based on the numbers above it may not seem like Milwaukee is a good place to invest in real estate in 2018. However, there are many promising signs that indicate the Milwaukee area is about to boom. These signs include billions of dollars in investment, an influx of educated millennials flocking to the downtown area, an up-and-coming culinary and craft beer scene, and much more.

Stay tuned for more information about this exciting market! You can also become a member of Real Wealth Network to speak with an Investment Counselor about any (or all) of these markets in more detail! 🙂

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About Kathy Fettke

Kathy Fettke is the Co-Founder and Co-CEO of Real Wealth Network. She is passionate about researching and then sharing the most important information about real estate, market cycles and the economy. Author of the #1 best-seller, Retire Rich with Rentals, Kathy is a frequent guest expert on such media as CNN, CNBC, Fox News, NPR and CBS MarketWatch.

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Real Wealth Network, LLC is an educational company and is not acting as a real estate broker. Always seek the services of licensed third party appraisers and inspectors to verify the value and condition of any property you intend to purchase. Never send funds directly to a seller but instead, use the services of professional title and escrow companies.

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